May 7, 2018

Initial Readings of the CEO Pay Ratio

Nearly eight years after it was mandated by Dodd-Frank, the CEO Pay Ratio is making its debut. To date, about half of the S&P 500 and a third of the Russell 3000 have reported their figures. In this Farient Brief, we review pay ratios reported through April 15, diving deeper to see what they are telling us so far, and get a first glimpse at where they are likely to end up by the close of proxy season.

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March 30, 2018

Board Refreshment: Keeping the Board, Nimble, Diverse, and Independent

Board refreshment

Board refreshment continues to be a hot topic with investors. Now more than ever, companies are faced with competitive pressures from new technologies and shrinking market share. In response, activist investors are recognizing that a long-entrenched board has an adverse impact on growth and value creation. In this Farient brief, we look at the effectiveness of refreshment policies in accelerating change in the boardroom, and in the overall quality of management.

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January 17, 2018

How to Align Executive and Corporate Board of Directors’ Interests

Boardroom

Investors and corporate board of directors want to ensure that the interests of executives and shareholders are aligned over the long term. The instruments most used to create this alignment are ownership requirements and post-vesting/exercise holding periods. In this Farient Brief, we explore post-vesting and exercise holding period policies for companies in the S&P 500.

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December 1, 2017

Gender Diversity on Boards: Reaching Gender Parity

Boardroom

If you’ve been following Farient’s series of Briefs regarding gender diversity on boards, we think you will agree we have highlighted some interesting facts. First, the representation of women board members varies significantly among industries. Second, although the percentage of women directors on public company boards is increasing, our most recent Brief shows that this has been accomplished primarily through newly added board seats versus replacing men who hold current seats. The question is why are companies adding board seats rather using vacated seats to increase board diversity? This Brief focuses on some of the reasons companies are using this approach to gender diversity on boards rather than replacing existing board members.

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October 20, 2017

What is Driving Gender Diversity on Boards?

As discussed in our last Farient Brief, the percentage of women directors in the S&P 500 has climbed from 16.9 percent in 2010 to 22.2 percent at the end of fiscal year 2016. Unlike initiatives in European countries where quotas have been legislated, in these U.S. companies change has been driven by pressure by investors and organizations, like 2020 Women on Boards, 30% ClubWomen Corporate Directors and Catalyst Inc, to name only a few. What dynamics underlie this change? Is the increase a result of men being replaced or new board seats being created?

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